Page 8 - The Vanderblue Team's Buyer's Guide

Agency Relationships

The Agency Relationship is based on one person representing the
interests of another person. Real Estate agents are licensed by the state
to represent a person in the purchase or sale of a property.

The responsibility of the real estate agent is defined by the state law relating to agents, the
REALTORS® Code of Ethics, and general principles of agency law. The type of relationship formed
between the agent and the client is called a fiduciary relationship. The agent owes the following
duties to the client: Loyalty, Obedience, Diligence, Disclosure, Confidentiality, Accountability and
Reasonable Skill & Care.

Why Buyers should use a Buyer’s Agent:

A buyer’s agent acts solely on behalf of the buyer. A buyer’s agent has fiduciary duties to the buyer
which include reasonable care, undivided loyalty, confidentiality and full disclosure. Responsibilities of a
Buyer’s Agent include:
• Arrange property showings that meet the buyer’s interest
• Provide information about the home or property, community, schools, taxes, utilities, and zoning
• Disclose any information about the property that can be obtained by public sources
• Prepare a competitive market analysis on the property
• Counsel the buyer on what price to offer the seller
• Show what other buyers are paying for property in the area
• Assist in writing an offer with the buyer’s interest in mind
• Negotiate the best price and terms for the buyer
• Keep the price capabilities and objectives of the buyer confidential, and maintain anonymity
if desired
• Assist with the loan application process
• Monitor all dates, events, and requirements for the buyer

Why Sellers should use a Listing Agent:

A seller’s agent acts solely on behalf of the seller. A seller’s agent has fiduciary duties to the seller
which include reasonable care, undivided loyalty, confidentiality and full disclosure. Although a seller’s
agent does not represent the buyer, a seller’s agent must treat buyers honestly and fairly. A seller’s
agent must also disclose all material facts about the seller’s property that are known by the broker. A
seller’s agent must:
• Prepare a competitive market analysis of the seller’s home or property
• Develop and implement effective marketing strategies for the seller, including asking price,
staging, and positioning
• Inform the seller how much other homes and properties have sold for in the area
• Present all offers and counsel seller on what price to accept
• Negotiate exclusively on the seller’s behalf
• Update the seller on market conditions
• Prepare an estimate of closing costs
• Work closely with seller to assure a smooth closing
• Monitor all dates, events, and requirements for the seller
• Represent the seller’s interest at the buyer’s walk-through inspection
• Attend the closing with the seller